Overview:

The Coca-Cola Company is a beverage retailer, manufacturer and marketer of non-alcoholic

beverage concentrates and syrups. The company's flagship product is Coca-Cola, but it offers
more than 500 brands in over 200 countries or territories and serves 1.6bn servings each day. The
Coca-Cola Company is headquartered in Atlanta, Georgia. Its stock is listed on the New York
Stock Exchange (NYSE).

Revenue:

£31,944m (2009)

Number of employees:

92,800 (2010)

Origin of ownership:

United States

Geographical presence:

Worldwide

Key contact & Job title:

Ed Knight, Head of Communications

Environmental Risks & Impact:

Coca-Cola measures its environmental impacts across the whole product lifestyle. This takes it
from the growing of ingredients and sourcing materials all the way to the way consumers dispose
of their empty cans and bottles. Two particular areas of focus are:

- Packaging: Responsible for 30% and 70% of the product's carbon footprint

- Refrigeration: 70% of the energy needed to make and supply drinks comes from refrigerating
drinks at the point of sale
 It is worth noting that environmental targets (water, energy and sustainable agriculture) are
considered to be a "Tier 2" issue, between Nutrition, the most important and "Tier 3", marketing,
packaging and governance.

Targets & Performance:

To reduce overall emissions Coca-Cola has singled out: refrigeration, manufacturing and
distribution.

- Total energy use: 2008 - 222,854,737kWh

- Carbon emissions: 2007 - 504,000 tonnes
- Target: In their commitment 2020 goals the company aim to cut CO2 emissions by 15% from
its 2007 level.

- Lighting and cooling: In 2009 Coca-Cola installed energy efficient LED lights in 18,000
coolers and vending machines and installed an energy management system in 5,000 coolers. A
further 10% will be fitted during 2010.

- Packaging: The company used a total of 196,636 tonnes of packaging in 2008 (down from
204,537 in 2007).
- Recycling: 97% of manufacturing waste was recycled in 2008. 3% went to landfill.
- Target: Coca-Cola is aiming to raise the recycled content of PET bottles to 25% across Europe
by the end of 2012.

- Water: 3.6bn litres of water used in 2008 in Great Britain.

Board of directors
 Herbert A. Allen
President, Chief Executive Officer and Director, Allen & Company Incorporate

Herbert A. Allen
President, Chief Executive Officer and Director, Allen & Company Incorporated
Ronald W. Allen
Former Chairman of the Board, President and Chief Executive Officer, Aaron’s Inc. and Delta
Air Lines, Inc.

Marc Bolland 
Head of European Portfolio Operations, The Blackstone Group L.P.

Ana Botín
Executive Chairman, Banco Santander, S.A.

Chris Davis
Chairman, Davis Advisors

Barry Diller
Chairman of the Board and Senior Executive, IAC/InterActiveCorp and Expedia Group, Inc. 

Helene D. Gayle
Chief Executive Officer, The Chicago Community Trust  

Alexis M. Herman
Chair and Chief Executive Officer, New Ventures LLC  

Bobby Kotick
President, Chief Executive Officer and Director, Activision Blizzard, Inc.

Maria Elena Lagomasino

Chief Executive Officer, Managing Partner, WE Family Offices, and Lead Independent Director

James Quincey
President and Chief Executive Officer, The Coca-Cola Company
 Product and services of Coca Cola
Coca-Cola is a carbonated soft drink sold in the stores, restaurants, and vending machines of
more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is
often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the
United States since March 27, 1994). Originally intended as a patent medicine when it was
invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman
Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink
market throughout the 20th century.

The company produced concentrate which is then sold to licensed Coca-Cola bottlers throughout
to the world. The bottlers, who hold territorially exclusive contracts with the company, produce
finished product in cans and bottles from the concentrate in combination with filtered water and
sweeteners. The bottles then sell, distribute and merchandise Coca-Cola to retails stores and
vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest single Coca-
Cola bottler in North America and Western Europe. The Coca-Cola Company also sells
concentrate for soda fountains to major restaurant and food service distributor.

The Coca-Cola Company has, an occasion, introduce other cola drinks under the Coke brand
name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola,
Coca-Cola Cherry, Coca-Cola Zero, and special editions with lemon, lime, or coffee. (The Coca-
Cola Company Profile, www.wikipedia.com, 2011)

Product and Services

The Coca-Cola Company sells the products form of soft drinks include beverage concentrates
and syrups, with major beverage products. Business has more than 300 beverage brands all over
the world with a major to be Coke, Fanta, Lift, Sprite, Frutopia 100% Fruit Juice, and Powerade.
The Coca-Cola Company Beverages its packages into plastic bottles of sizes 2 liters, 1.25 liters,
600ml and 300ml. these are also available in Aluminium cans of 375ml. Coca-Cola is the most
well-known trademark, recognized by 94 percent of the world population. Business was very
successful and has an excellent reputation. The price of Coca-Cola are various according to size,
place, and packaging. Maybe if Coca-Cola sells in the school will have different price if the
Coca-Cola sells in the bazaar or market, or if we compare the price of Coca-Cola in Indonesia
will different in America. (My blog Dewi Irianty, 2011)

As information from Coca-Cola Amatil (CCA) Indonesia (Profile Company, www.Coca-

Colaamatil.co.id, 2011) Coca-Cola Bottling Indonesia (CCBI) is a manufacturer and distributor
of soft-drinks in Indonesia. We manufacture and distribute products licensed from The Coca-
Cola Company. In addition to providing quality products and high standards, we also provide the
best support services, both for our customer (distribution partners) as well as consumers. To
support the best service, the CCBI provides the National Contact Center (NCC), a service center
for customer and consumers throughout Indonesia. NCC serves as a medium for customers and
consumers who need information or any services related to the Company and the products of
Coca-Cola.

Services from the NCC include:

Customer service which includes the request for a customers, refrigeration equipment, ordering
products from both traditional and modern outlets, and other matters related to the distribution or
sale;

Customer service which includes product information, product quality and packaging, products
promotion and activities;

Frequently Asked Question which include the research, practice or internship and job vacancies
the CCBI, request to visits to the factory CCBI, offering services and products for CCBI.

The suggest 90% of our customers prefer to buy of Coca-Cola in a cold state. To support
increase sales growth and push the level of benefits to our customers, the role of Cold Drink
Equipment (cooling equipment) becomes important. Therefore, we always to ensure that the
Cold Drink Equipment that are in all our outlets to function properly and have an interesting
view. One of the special program conducted by Coca-Cola Bottling Indonesia to realize that goal
is to provide new services, RED desk for customers who already have a cooler of Coca-Cola.

Types of services available are:

Receive and handle complaints of damage from the outlet of Cold Drink Equipment as well as
the Sales Center

Receive and handle request installation or withdrawal from the outlet of Cold Drink Equipment
and Sales Center

Answering question about the Cold Drink Equipment Services Coca-Cola

Why the Coca-Cola Company goes to International Business it because they want to spread the
product all over the world, and people will know the product. Beside that reason, the Coca-Cola
also wants to raise the revenue and it will affect the production and the production will up
because the demand of the product is growth up too. It’s not about just the company get the
advantage from this market, but the government will also get the revenue because The Coca-
Cola Company do the export-import where there is a tax will raise the income of the
government. The Coca-Cola Company is often appointed to be a sponsor of FIFA World Cup
Football. Coca-Cola became sponsor of the World Cup almost every year held the World Cup
including the 2010 World Cup. (www.google.com, www.scribd.com, 2011)

The differences between across countries and home country

The differences between across country and home country shown in the products they are
produced. Each country have the different product although they have same name products, there
are some products may be same. In Indonesia Coca-Cola Bottling Indonesia or Coca-Cola
Company produced the products in the bottle with ordinary design and non-alcohol, it because in
Indonesia the government not allowed it. But, in America they have extraordinary design with
the different design every product. In Indonesia they don’t have a unique design like the product
of America, and in America they have many products of Coca-Cola. This matter of concern is
supposed to be the core differences between across country and home country. (Products list of
Coca-Cola, www.thecoca-colacompany.co.id, 2011), (Product Coca-Cola, www.google.com,
2011)

Strategy

To support their products The Coca-Cola Company has strategy to their products and their
company, the strategy such as sales and marketing, manufacturing and distribution, and
innovation. To support their sales and marketing, they designed many programs which are
pointed to consumers and loyalty of their products.

Sales and Marketing

Promotion

Various promotions designed not only to increase their sales and marketing, but also to continue
improve their consumer satisfaction and loyalty of their products.

Serving Their Customers

Customer Service Center (CSC) is designed to continue improve their customer satisfaction and
loyalty their products by providing superior levels of service to their customers based on their
specific needs.

Area Marketing Contractor

Encourage by the company’s limited resources to cost-effectively service certain operating areas
directly and strong commitment to create job opportunities in the informal sector, Coca-Cola
Bottling Indonesia (CCBI) continue develops its product distribution system through small and
medium-sized business in Indonesia. Under the system, CCBI works with two mains of third
parties: Area Marketing Contractors known as AMCs, and street vending.

Serving their products

At Coca-Cola Bottling Indonesia, we are commits to providing their customers with a range of
Cold Drink Equipment to support their business. From ice chests for kiosk, to electric coolers for
retail outlets, vending machines and street vending, we lend these facilities to the customer at no
cost, so they can sells Coca-Cola Products cold op their consumers.
 Balance Sheet

A balance sheet is a financial statement that reports a company's assets, liabilities and
shareholders' equity at a specific point in time, and provides a basis for computing rates of return
and evaluating its capital structure. It is a financial statement that provides a snapshot of what a
company owns and owes, as well as the amount invested by shareholders.

It is used alongside other important financial statements such as the income statement and
statement of cash flows in conducting fundamental analysis or calculating financial ratios.
 Cash Flow Statement

In financial accounting, a cash flow statement, also known as statement of cash flows,[1] is
a financial statement that shows how changes in balance sheet accounts and income affect cash
and cash equivalents, and breaks the analysis down to operating, investing, and financing
activities. Essentially, the cash flow statement is concerned with the flow of cash in and out of
the business. As an analytical tool, the statement of cash flows is useful in determining the short-
term viability of a company, particularly its ability to pay bills. International Accounting
Standard 7 (IAS 7), is the International Accounting Standard that deals with cash flow statements
Income Statement
An income statement is one of the three important financial statements used for reporting a
company's financial performance over a specific accounting period, with the other two key
statements being the balance sheet and the statement of cash flows. Also known as the profit and
loss statement or the statement of revenue and expense, the income statement primarily focuses
on the company’s revenues and expenses during a particular period.
Financial Ratios
Financial ratios are relationships determined from a company's financial information and used
for comparison purposes. Examples include such often referred to measures as return on
investment (ROI), return on assets (ROA), and debt-to-equity, to name just three. These ratios
are the result of dividing one account balance or financial measurement with another. Usually
these measurements or account balances are found on one of the company's financial statements
—balance sheet, income statement, cashflow statement, and/or statement of changes in owner's
equity. Financial ratios can provide small business owners and managers with a valuable tool
with which to measure their progress against predetermined internal goals, a certain competitor,
or the overall industry. In addition, tracking various ratios over time is a powerful means of
identifying trends in their early stages. Ratios are also used by bankers, investors, and business
analysts to assess a company's financial status.

Ratios are calculated by dividing one number by another, total sales divided by number of
employees, for example. Ratios enable business owners to examine the relationships between
items and measure that relationship. They are simple to calculate, easy to use, and provide
business owners with insight into what is happening within their business, insights that are not
always apparent upon review of the financial statements alone. Ratios are aids to judgment and
cannot take the place of experience. But experience with reading ratios and tracking them over
time will make any manager a better manager. Ratios can help to pinpoint areas that need
attention before the looming problem within the area is easily visible.

Virtually any financial statistics can be compared using a ratio. In reality, however, small
business owners and managers only need to be concerned with a small set of ratios in order to
identify where improvements are needed.

It is important to keep in mind that financial ratios are time sensitive; they can only present a
picture of the business at the time that the underlying figures were prepared. For example, a
retailer calculating ratios before and after the Christmas season would get very different results.
In addition, ratios can be misleading when taken singly, though they can be quite valuable when
a small business tracks them over time or uses them as a basis for comparison against company
goals or industry standards.
Financial Ratios
 Analysis of Financial Ratio

Working Capital

(Calculation)

2018

=Current Assets – Current Liabilities

= 30634 – 29223

=1411

2017

= 36545 - 27,194

=9351

Profitability Ratio

Return on sales

(Calculation)

2018

=Net Income / Sales (100)

=64,34 / 31856 (100)

=20.1971%

2017

=1,248 / 35410 (100)

 =3.5244%

Leverage Ratio

Debt to Equity Ratio

(calculation)

2018

=Debt / Share Holder’s Equity (100)

=2.2854 / 19,058 (100)

= 0.0119%

2017

=2.5128 / 18,977 (100)

=0.0132%

Efficiency Ratio

Operating Margins

(Calculation)

2018

=Net Operating Income / Sale

=8,700 / 31856

=0.2731%

2017

=7,599 / 35410
 =0.2146%

Liquidity Ratio

Liquidity Ratio

(calculation)

2018

=Current Assets – Inventories / Current Liabilities

=30,634 – 2,766 / 29,223

=0.9536

2017

=36,545 – 2655 / 27194

=1.2462
 SWOT Analysis

SWOT analysis (strengths, weaknesses, opportunities and threats analysis) is a framework for
identifying and analyzing the internal and external factors that can have an impact on the
viability of a project, product, place or person SWOT analysis is most commonly used by
business entities, but it is also used by nonprofit organizations and, to a lesser degree, individuals
for personal assessment. Additionally, it can be used to assess initiatives, products or projects.

The framework is credited to Albert Humphrey, who tested the approach in the 1960s and 1970s
at the Stanford Research Institute. Developed for business and based on data from Fortune 500
companies, the SWOT analysis has been adopted by organizations of all types as an aid to
making decisions.

Elements of a SWOT analysis

As its name states, a SWOT analysis examines four elements:

 Strengths: Internal attributes and resources that support a successful outcome.

 Weaknesses: Internal attributes and resources that work against a successful outcome.

 Opportunities: External factors that the entity can capitalize on or use to its advantage.

 Threats: External factors that could jeopardize the entity's success.

A SWOT matrix is often used to organize items identified under each of these four elements. A
SWOT matrix is usually a square divided into four quadrants, with each quadrant representing
one of the specific elements. Decision-makers identify and list specific strengths in the first
quadrant, weaknesses in the next, then opportunities and, lastly, threats.

Entities undertaking a SWOT analysis can opt to use any one of the various SWOT analysis
templates in existence; these templates are generally variations of the standard four-quadrant
SWOT matrix.
 How to do a SWOT analysis

A SWOT analysis generally requires decision-makers to first specify the objective they hope to
achieve for the business, organization, initiative or individual.

From there, the decision-makers list the strengths and weaknesses as well as opportunities and
threats.

Various tools exist to guide decision-makers through the process, often using a series of questions
under each of the four elements. For example, decision-makers may be guided through questions
such as "What do you do better than anyone else?" and "What advantages do you have?" to identify
strengths; they may be asked "Where do you need improvement?” to identify weaknesses. Similarly,
they'd run through questions such as "What market trends could increase sales?" and "Where do your
competitors have market advantages?" to identify opportunities and threats.

Example of a SWOT analysis

The end the result of a SWOT analysis should be a chart or list of a subject’s characteristics. The
following is an example of an analysis of an imaginary retail employee:

Strengths: good communication skills, on time for shifts, handles customers well, gets along well
with all departments, physical strength, good availability.

Weaknesses: takes lengthy smoke breaks, low technical skill, very prone to spending time chatting.

Opportunities: store front worker, greeting customers and assisting them find product, helping keep
customers satisfied, assisting customers post purchase with items and ensuring buying confidence,
stocking shelves.

Threats: occasionally missing time during peak business due to breaks, sometimes too much time
spent per customer post sale, too much time in interdepartmental chat.
 Using a SWOT analysis

A SWOT analysis should be used to help an entity, whether it is an organization or an individual,

to gain insight into its current and future position in the marketplace or against a stated goal.

The idea is that because entities can see competitive advantages and positive prospects, as well
as existing and potential problems, they can develop plans to capitalize on positives, address
deficits or do both.

In other words, once the SWOT factors are identified, decision-makers should be better able to
ascertain if an initiative, project or product is worth pursuing and what is required to make it
successful. As such, the analysis aims to help an organization match its resources to the
competitive environment in which it operates.

Conclusion

To produce the world's best known product, The Coca-Cola Company has to employ the highest
quality processes and establish standards which guarantee the production of a standarised
product which meets consumers' high expectations each and every time they drink a bottle or can
of Coca-Cola.

In order to guarantee these standards the Company has had to develop a close relationship with
its franchisees based on a mutual concern for quality. Total Quality Management lies at the heart
of this process involving a continuous emphasis on getting quality standards right every time and
on continually seeking new ways to improve performance.
 Recommendation

The recommendation of Coca-Cola Company is based on performing various valuation models,

which include HR practices, economic profit analysis, relative valuation and a fundamental price
to earnings valuation model that revealed the Coca-Cola Company to be overvalued. Even
though they find the stock to be overvalued and they feel that KO has some promising outlooks
as well as possible challenges in the near future and they want to recommend it as a hold instead
of a sell.

The Coca-Cola Company is the #1 company within the non-alcoholic beverages industry. They
have a 20- year standing of being the leader and investors know that the Coca-Cola Company has
an extraordinary reputation for maximizing shareholder value.

Opportunities that exist for the company in the future is expanding market share in the non-
carbonated beverages segment, a restructuring of their business model, and better consistency of
earnings results.

A challenge that the Coca-Cola Company is facing is the struggle with their global competitors
in the fact that their HR practices are greater and less than coke. If coke wants to more reputation
in the world they must produce more incentives for employees from which they more done work
hard and produce good quality. Their new management team needs to work on implementing
cohesive goals between the two to reach the Coca-Cola Company’s long-term growth potential
 Executive Summary

The Coca Cola Company is currently the leading beverage provider in the United States and
around the world. The Coca Cola Company has been able to do this because of their core
mission, which is to refresh the world, to inspire moments of optimism and happiness, and to
create value and make a difference (Company Mission Statement). Being on top and
outperforming competitors is Coca Cola’s main goal. In recent years, however, Coca Cola’s
main competitors PepsiCo and Dr Pepper Snapple Group have been doing their best to take Coca
Cola’s top spot, specifically PepsiCo. Some of the reason for PepsiCo’s success is through its
efforts in the snack food manufacturing industry with its partnership with Frito-Lay. In recent
years PepsiCo has generated more than 40% more revenue than Coca Cola. PepsiCo’s net
revenue after 2010 was at $60 billion while The Coca Cola Company’s was at $38 billion
(Mergent Online). Part of the reason PepsiCo has experienced a greater revenue is largely due to
their presence in the snack foods manufacturing industry. Therefore The Coca Cola Company
should increase their presence in the snack food manufacturing industry in order for them to keep
up with PepsiCo.

I propose that Coca Cola partner with ConAgra Foods, which is currently fourth in the snack
food manufacturing industry behind PepsiCo Frito Lay, Kraft Nabisco, and Procter and Gamble
(Hoovers). Currently The Coca Cola Company already is partnered with Procter and Gamble,
which has already allowed them to enter into the snack foods manufacturing industry. The Coca
Cola Company needs to further its efforts by partnering with ConAgra Foods so it can continue
to expand and compete directly with PepsiCo in the beverage and snack food manufacturing
industry. Partnering with ConAgra Foods will be greatly beneficial because of their experience
within the snack food manufacturing industry. The Coca Cola Company and ConAgra Foods will
be able to benefit from each other in this possible joint venture. The Coca Company will further
benefit from the experience ConAgra Foods already holds within the snack foods manufacturing

industry whilst at the same time ConAgra Foods will benefit from the structural and financial
strengths provided by The Coca Cola Company.